Dear all:

In my view,Market economy bases on self-interested motive,Competition which chases for maximum profit results in flooded selfishness;Market economy also bases on contract.Without cooperation,contract can not be implemented,Good Market Economy need balance of competition and cooperation,Hence Adam Smith wrote The Theory of Moral Sentiment.

Yi Hu

China Society for History of Economic Thought

PS:Ref for "Competition" Tong Aspromourgoe(2008)."The Science of Wealth"Rootledge.(p71-p75)

Some insights may be found in Adam Smith.

1.Cooperation (the type of normal cooperation):
"Man has almost constant occasion for the help of his brethren, and it is in vain for him to expect it from their benevolence only.  He will be more likely to prevail if he can interest their self-love in his favor, and show them that it is for their own advantage to do for him what he requires of them. Whoever offers to another a bargain of any kind, proposes to do this. Give me that which I want, and you shall have this which you want, is the meaning of every such offer; and it is in this manner that we obtain from one another the far greater part of those good offices which we stand in need of."

2. Competition (socially acceptable competition)
"In the race for wealth, and honors, and preferment's, he may run as hard as he can, and strain every nerve and every muscle, in order to outstrip all his competitors. But if he should justle, or throw down any of them, the indulgence of the spectators is entirely at an end. It is a violation of fair play, which they cannot admit of."
"Though his own happiness may be of more importance to him than that of all the world besides, to every other person it is of no more consequence than that of any other man. Though it may be true, therefore, that every individual, in his own breast, naturally prefers himself to all mankind, yet he dares not look mankind in the face, and avow that he acts according to this principle. He feels that in this preference they can never go along with him, and that how natural soever it may be to him, it must always appear excessive and extravagant to them."
"When he views himself in the light in which he is conscious that others will view him, he sees that to them he is but one of the multitude in no respect better than any other in it. If he would act so as that the impartial spectator may enter into the principles of his conduct, which is what of all things he has the greatest desire to do, he must, upon this, as upon all other occasions, humble the arrogance of his self-love, and bring it down to something which other men can go along with. They will indulge it so far as to allow him to be more anxious about, and to pursue with more earnest assiduity, his own happiness than that of any other person."

3. Competition (why do we compete)
"From whence, then, arises that emulation which runs through all the different ranks of men; and what are the advantages which we propose by that great purpose of human life which we call bettering our condition?"
"To be observed, to be attended to, to be taken notice of with sympathy, complacency, and approbation, are all the advantages which we can propose to derive from it. It is the vanity, not the ease, or the pleasure, which interests us."
"To obtain the conveniences which these afford, [The poor man's son] submits in the first year, nay in the first month of his application, to more fatigue of body and more uneasiness of mind than he could have suffered through the whole of his life from the want of them. He studies to distinguish himself in some laborious profession. With the most unrelenting industry he labours night and day to acquire talents superior to all his competitors. He endeavours next to bring those talents into public view, and with equal assiduity solicits every opportunity of employment. For this purpose he makes his court to all mankind; he serves those whom he hates, and is obsequious to those whom he despises. Through the whole of his life he pursues the idea of a certain artificial and elegant repose which he may never arrive at, for which he sacrifices a real tranquility that is at all times in his power, and which, if in the extremity of old age he should at last attain to it, he will find to be in no respect preferable to that humble security and contentment which he had abandoned for it."

Antonio Almodovar

-----Original Message-----
From: Societies for the History of Economics [mailto:[log in to unmask]] On Behalf Of Bruce Caldwell
Sent: quarta-feira, 21 de Novembro de 2012 19:37
To: [log in to unmask]
Subject: [SHOE] Fwd: question

Dear SHOE list:

I got the following 2 questions from Paul Rubin. Any takers?
Question:  When was "competition" first used in economics.  Harder
question: Why is the economy called "competitive" when it is actually cooperative?
Please answer to the list, and I'll forward the consensus answers (if they emerge) to him.
Bruce Caldwell